Dynamic pricing has quickly proven itself to be a viable source of incremental ticket revenue, according to panelists at the inaugural SBJ/SBD Ticketing Symposium at the W Hoboken in New Jersey, part of this week's AT&T Sports Facilities & Franchises conference. But striking a proper balance between computer-generated analytics that feed dynamic pricing structures and real-world sales realities remains a work in progress. The discussion, “An Inside Look at Dynamic Pricing,” featured Digonex VP/Business Development Rex Fisher, StratBridge Founder & CEO Matt Marolda, Twins VP/Ticket Sales & Service Steve Smith and Cavaliers VP/Ticket Sales & Services Mike Tomon. The Cavaliers, now in their third season of dynamically pricing tickets, made $10 in incremental revenue per ticket sold through the dynamic season, even with a last-place team. That sum is higher than the $9 per ticket in incremental revenue generated last year during LeBron James' last year in Cleveland, albeit on lower ticket volume this year. The incremental revenue averages are fairly typical for the fast-growing collection of clubs experimenting in the space. "We found we were educating the market poorly before," said Tomon. "We want to change the booking curve and not just have people conditioned to just wait until the last minute to buy." But panelists found no fixed ground on the age-old data-versus-gut debate with regard to dynamic pricing. "We try to find balance," said Marolda, whose firm works with numerous teams on ticket pricing mechanisms. "We bring the science, but recognize the input of the team and that human interaction." Fisher added, "Different clubs have different tolerances on what they're willing to do. … Anytime you're manipulating clients' prices, there has to be a relationship and a real sense of trust."
